TLDR: A recent report reveals that 49% of finance teams in the UAE have adopted Artificial Intelligence, significantly surpassing the global average. While AI is being leveraged across various financial operations, particularly in accounting and reporting, only 37% of UAE finance leaders currently report a positive return on investment, compared to 66% globally. Generative AI is emerging as a key strategic focus, supported by government initiatives and increasing IT investments aimed at enhancing efficiency.
The United Arab Emirates is rapidly emerging as a frontrunner in the adoption of Artificial Intelligence within its finance sector. A new benchmarking study by KPMG, titled “Is your finance function AI ready?“, indicates that a remarkable 49% of UAE finance teams are already utilizing AI technologies. This rate of adoption notably outpaces the global average, signaling the nation’s proactive approach to digital transformation and technological integration .
AI is being strategically deployed across a spectrum of finance operations, including accounting, financial planning, analysis, treasury, tax, and risk management. Accounting and management control teams are at the forefront of this integration, leveraging AI for narrative reporting, predictive analytics, and generating real-time insights. Concrete examples of this adoption include a prominent UAE bank employing generative AI to automate internal reporting and risk assessments, and a government utility utilizing AI assistants for billing, internal reports, and documentation workflows .
Despite the high adoption rate, the report highlights a significant disparity in the perceived return on investment (ROI). Only 37% of UAE finance leaders currently report a positive ROI from their AI initiatives, a figure considerably lower than the 66% reported globally. This suggests that while the UAE is quick to embrace AI, optimizing its financial benefits remains a key area for development .
Organizations in the UAE are allocating approximately 10% of their IT budgets to AI, which is close to the global average of 13%. This sustained investment underscores a strong intent to further integrate AI into financial frameworks. The study also found that beyond current users, 59% of UAE finance teams are either running or planning pilot projects, with an additional 33% in early planning stages, indicating a robust pipeline for future AI expansion .
Also Read:
- Cognite Establishes Abu Dhabi Hub to Accelerate Global Industrial AI Integration
- Generative AI Poised to Revolutionize Agriculture, Retail, and Wholesale Sectors by 2025
Generative AI, in particular, is gaining traction as a strategic focus. With strong government support and increasing IT investment, there are substantial opportunities to scale AI applications and significantly boost workforce efficiency across the finance sector. This strategic emphasis is expected to drive further innovation and solidify the UAE’s position as a leader in industrial AI .
